(The effect of amortization on cash from operations, LO 1, 3) In 2003 Anyox Ltd.

(Anyox) reported net income of $100,000. All revenues and expenses were in cash, except for a $15,000 amortization expense.

Required

a. Calculate cash from operations for Anyox in 2003.

b. Suppose that instead of a $15,000 amortization expense in 2003, Anyox expensed $22,000 for amortization. Assume that all other revenues and expenses remained the same. What would Anyox’s net income be in 2003? What would its cash from operations be in 2003? Explain the reasons for any differences or similarities in your answer for when the amortization expense was

$15,000 and when it was $22,000.